Excellent point, Babak. The bartender and manager should not have allowed it.
In my city (Indianapolis, Indiana, USA) there is a smoking ordinance that basically says there is no smoking in any restaurants unless it is a 21 and over bar; this effectively prevents anyone under 21 from being exposed to cigarette smoke in restaurants, bars, and clubs.
Under this law, a bar that allows smoking would not be permitted to allow anyone under 21 inside; no underage teenagers, no kids, no babies.
Besides this, it is a personal belief of mine that one should never drink in front of children. (It is taboo in my family.)